The world's largest printing press manufacturer posted sales up 7.6% to €2.5bn (£1.95bn) adjusted to €2.42bn for exchange rate movements, which was inline with a targeted increase of 4%.

A strong final quarter pushed incoming orders to €2.49bn (2015: €2.43bn), while EBITDA excluding special items was on par with the previous year (€188m) at €189m and represented an operating margin of 8%. Net result after taxes achieved a huge turnaround to €28m (€-72m), although free cash flow slipped from €-17m to €-32m, primarily due to restructuring costs and the acquisition last year of PSG.

“Heidelberg has delivered and is once again making profits. The reorientation is showing positive results,” said chief executive Gerold Linzbach. 

“We’re also looking to achieve further growth in the future with our investments in the digital and services business. The high level of customer interest at Drupa confirms we’ve adopted the right strategy,” he added.

The services division delivered €1.17bn of total sales, reaping the benefit of PSG's acquisition, while the equipment division brought in €1.33bn in sales.

Linzbach said that the company would continue to focus on annual sales growth of up to 4% and through organic and external growth were aiming for consolidated sales of around €3bn in the foreseeable future. 

He said that at least 50% of this would be generated by services and 10-20% by digital. However, he said the contribution from sheetfed presses would decrease from well over 50% of sales to just 30-40%. 

Chief financial officer Dirk Kaliebe said: “We have been able to change gears from restructuring to growth mode. We are continuing to invest a significant amount in our own research and development with a focus on digitisation.” 

In March 2016 the business became the first in Germany to secure funding, in the form of a €100m loan, from the European Investment Bank. The funds can be brought down in tranches, each with a term of seven years, the first €50m of which was called by the company in April.

The loan is expected to mature at the start of 2024 and will support Heidelberg’s research and development activities in digitisation and the expansion of the packaging, digital printing and services growth areas, the company said.

Heidelberg has recently made senior appointments to its digital team with the addition of Montserrat Peidro-Insa as vice president of worldwide sales of digital products and software and Anthony Thirlby as general manager for Heidelberg's worldwide Prinect business. 

Heidelberg shares were up €0.01 to €2.66 at the time of writing.